Saudi inflation falls to 1.6% in March

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Saudi Arabia’s inflation fell month-on-month to 1.6% in March 2024, according to data by the General Authority for Statistics (GASTAT).

The cost-of-living index for March dropped to 110.53 points, according to the base year 2018, from 108.74 points in the same month a year earlier.

Inflation is measured by the change percentage in the cost of living between the current period and the corresponding period of the previous year. The increase or decline of inflation is measured compared to the previous month.

The higher consumer price index (CPI) was mainly driven by an 8.8% year-on-year (YoY) rise in housing, water, electricity, gas and other fuel prices.

Actual housing rents increased by 10.5% YoY in March, reflecting growth in villa rent prices by 9.7%. The rise in this section significantly impacted the annual inflation hike for March, given its weight in the index. 

Food and beverage section rose 3.1% YoY due to an increase in vegetables prices by 6.8%, while restaurants & hotels section rose 2.4% YoY.

On the other hand, furnishing, household equipment and maintenance retreated by 3.2% YoY in March affected by a decrease in the prices of furniture, carpets and flooring by 5.3%.

Meanwhile, the clothing and footwear section dropped by 4.0% YoY and transportation slid by 1.8% YoY on 3.0% lower vehicle purchase prices, as shown in the following table:

Inflation went up in four cities: Al Hofuf, Buraydah, Hail and Sakaka.

In contrast, inflation fell in Riyadh, Jeddah, Abha Najran, Arar and Madinah.

Makkah, Tabuk, Jizan and al Baha, however, recorded negative inflation while Dammam and Taif saw a stable inflation rate.

The table below shows the inflation rate in Saudi cities during March 2024:

The CPI reflects price changes of a fixed basket of goods and services that includes 490 items. The items were chosen based on the results of the Household Expenditure and Income Survey conducted in 2018.

Prices are collected through the point of sale (POS) field visits.